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Monday, January 30, 2012 Two sections Volume 40, No. 5

FarmWeek on the web: FarmWeekNow.com Illinois Farm Bureau®on the web: www.ilfb.org

r e C e n t r A i n s o f f e r e dsome relief in parts of parchedSouth America, but crop concernspersist. ...........................................10

A sPringField artist makesjewelry out of cooked bacon. Abacon belt buckle, earrings, or cufflinks, anyone? ..................................5

With COngress and theGeneral Assembly in session overt h e n e x t s e v e r a l m o n t h s , FB Act members must get ready. ...3

Johnson: Pension debt state’s financial albatross

BY MARTIN ROSSFarmWeek

In his annual State of theUnion Address last week, Pres-ident Obama directed Con-gress to address crumbling U.S.infrastructure, the need forexpanded energy resources,and current inconsistencies inthe federal tax code.

Touting what he deemed a

“Blueprint for an AmericaBuilt to Last,” Obama recom-mended fundamental taxreform, major infrastructureimprovements with reducedproject “red tape,” and an “all-out, all-of-the-above” cleanenergy strategy emphasizingcontinued renewable energytax credits and natural gasdevelopment.

U.S. companies receive taxbreaks for “moving jobs andprofits overseas,” while “com-panies that choose to stay inAmerica get hit with one ofthe highest tax rates in theworld,” Obama noted. Heproposed a new “basic mini-mum tax” for multinationalcompanies that operate withinthe U.S.

In a news conferenceaddressing the president’sremarks, Peoria RepublicanU.S. Rep. Aaron Schock calledfor comprehensive tax reform,proposing elimination of manycurrent “loopholes and specialcarve-outs” to lower across-the-board income tax rateswithout reducing federal rev-enues.

At the same time, Schock

recognized concerns withinthe farm community aboutfuture estate tax liability, con-tinuation of current bonusdepreciation, and “the longline of tax issues that affect

their (farmers’) day-to-daybusinesses, that affect howmuch risk they take, that affectwhat kind of investments orcapital outlays they’re going tomake.”

Congress in 2010 approveda temporary $5 million indi-vidual estate tax exemption,at a 35 percent top tax rate.However, producers face areturn to a pre-2002 $1 mil-lion exemption in 2013 iflawmakers can’t devise a long-term fix by Dec. 31.

That’s a substantial dropfor farm families who haveseen significantly higher landvalues over the past decade,Illinois Farm Bureau Presi-

dent Philip Nelson main-tained. He warned againstpushing an estate tax fix untilthe end of 2012, “with nocertainty for our producers.”

“The sooner we can answerthat question and the soonerwe can resolve tax policy, thesooner entrepreneurs and busi-nesspeople can go about theirwork of investing and growingtheir businesses in the UnitedStates based on that new poli-cy,” Schock told FarmWeek.

Obama emphasized theneed to “rebuild” U.S. infra-structure, noting the economicimpact of “crumbling roadsand bridges, a power grid thatwastes too much energy, anincomplete high-speed broad-band network that prevents asmall business owner in ruralAmerica from selling her prod-ucts all over the world.”

The president announcedplans to sign an executiveorder that would reduce fed-eral bureaucracy “that slowsdown too many constructionprojects,” and urged Congressto do its part by fundingtransportation/infrastructureprojects.

Schock argued a five-yearhighway bill reauthorization is“truly something Republicansand Democrats can get behindin an election year.”

The House is expected tovote on highway measures inFebruary, tentatively includinga Schock amendment thatwould use revenues from off-shore drilling and natural gasexploration for highwayimprovements.

Obama pledged “every pos-sible action to safely develop”natural gas deposits, anddirected the Department ofInterior to finalize a nationaloffshore energy plan thatmakes 75 percent of potentialoffshore resources availablefor development by openingnew areas in the Gulf andAlaska.

However, he recently reject-ed an application to build a1,700-mile, Canada-to-TexasKeystone XL oil pipeline,arguing a congressionallyimposed deadline for a deci-sion did not leave sufficienttime for a necessary project

Obama backs tax reform, infrastructure/energy rebuild

BY KAY SHIPMANFarmWeek

The state’s financial health will deteri-orate further unless state employee pen-sion debt is addressed, the Illinois Agri-cultural Legislative Roundtable was

warned last week.“If we don’t deal

with this (pension debt)issue, the other issuesdon’t matter,” reportedTom Johnson, presi-dent of the Taxpayers’Federation of Illinois.

Johnson usedsobering financialdata to support his

claim.Illinois has the dubious honor of

having the nation’s top unfunded stateemployee pension — an estimated 38percent funded. Current pension fundassets are not enough to pay for exist-ing retirees let alone cover retirement

benefits for current state employees,according to Johnson.

If current economic trends and pen-sion formulas do not deviate, the statewould spend 60 cents of every $1 in taxrevenue collected for pensions by 2045,he noted.

Johnson calculated the state’s currenttotal debt is $170 billion, including capi-tal program debt.

Although the temporary 2011 incometax increases generated $7.3 billion, thestate didn’t make any headway towardgetting out of debt, he said. Instead, thecurrent fiscal budget pushed $1.7 billionin Medicaid debt into fiscal year 2013and overstated anticipated federal rev-enue by $800 million.

“So now we’ve got to do cuts. Whereshould we cut? Education (grades) Kthough 12? Higher ed? Human servic-es?” Johnson asked.

One of the state agencies facingpotential cuts considers the status quo to

be a positive outcome. H.W. Devlin, act-ing state agriculture director, admittedthe Illinois Department of Agriculture(IDOA) took budget hits last year, “butwe’re still kicking.”

“If we can come out of the nextbudget cycle (as) stable without any sig-nificant reductions, we’d be happy,”Devlin said. “The governor . . . wants tosee us do well . . . he has to balance allthese issues.”

The increased income tax rates haveraised the state’s average tax burden to10.35 percent, above the national averageof 9.32 percent, according to Johnson.

At the same time, the state’s averagewealth has not kept pace and the averagetax burden vs. average wealth is out ofbalance. Once that happens, “we may beovertaxing,” Johnson said.

The Taxpayers Federation supportslegislative changes to the state employeepension system and an Illinois SupremeCourt decision to determine any consti-

tutionality question about those changes.Johnson called for a re-engi-

neering of state finances. TheTaxpayers Federation is“going to put out ideas thatwill be shocking to somepeople,” he said.

“As we come out withsome ideas, we’re ask-ing for youropen-minded-ness. We haveto do some-thing. Thisis the No.1 prob-lemfacingourstate.”

Tom Johnson

FarmWeekNow.com

Go to FarmWeekNow.com tolisten to Matt Kaye’s follow-upreport on the State of the Unionspeech.

See Obama, page 4

IDOA SETS CORN REFERENDUM HEARING —H.W. Devlin, acting director of agriculture, has planned a 10a.m. Tuesday, Feb. 21, public hearing for Illinois corn growersto submit comments on a proposed corn checkoff referen-dum. The hearing will be at the Illinois Department of Agri-culture (IDOA) building on the Illinois State Fairgrounds,Springfield.

The Illinois Corn Marketing Board (ICMB) is proposing toenhance corn marketing and promotion by increasing thecheckoff by one-fourth of a cent per bushel. The proposalwould increase the voluntary rate from three-eights of a centto five-eights of a cent per bushel. Growers would still have aright to a refund.

Copies of the proposed amendment are available fromIDOA’s marketing and promotion office.

After the public hearing, ICMB will review all commentspresented. If the ICMB then approves the proposed amend-ment, IDOA will hold a referendum within 90 days

Individuals unable to attend the hearing may submit writtencomments by Feb. 17 and address them to: Director of Agri-culture, P.O. Box 19281, Springfield, Ill., 62794-9281.

IFB TO TAKE PART IN HEARING-LOSS STUDY— Illinois Farm Bureau recently partnered with the Universityof Michigan’s “HEAR on the Farm” research program.

The program is a web-based study being offered to farmerswith a goal of reducing noise-related hearing losses amongfarmers by increasing their use of hearing protection devices.

Producers who enroll in the study could earn as much as$40 for participating and earn additional money for FarmBureau safety programs.

For details or to enroll in the program, go to the website{www.hearonthefarm.org} and enter the access code“saveears.” Farmers also can contact study administrators [email protected].

Representatives of the program will be at the IFB YoungLeaders State Conference this Friday and Saturday, Feb. 3 and4, to answer questions and assist farmers with the study. TheYL event will be at the Marriott Hotel and Conference Centerin Normal.

CENTRAL ILLINOIS FARM FAMILY SHARESIMPACT — A “USA TODAY” story described the potentialnegative impacts of federal child labor rules to the young sonsof LaSalle County Farm Bureau Vice President Darren Wal-ter.

Walter, his wife, Samantha, and sons, Austin and Dalton,were featured in a Jan. 25 story that outlined how the boyswould no longer be able to work on their grandfather’s orgreat-uncle’s farms if the Department of Labor’s proposal onchild labor is implemented.

The Walters explain how they teach their children safetypractices and gauge each child’s responsibilities based onhis abilities. The story and photos are online at{www.usatoday.com/money/economy/story/2012-01-24/regulations-kids-farm-work/52778304/1}.

FarmWeek Monday, January 30, 2012

(ISSN0197-6680)

Vol. 40 No. 5 January 30, 2012

Dedicated to improving the profitability of farm-ing, and a higher quality of life for Illinois farmers.FarmWeek is produced by the Illinois FarmBureau.

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© 2012 Illinois Agricultural Association

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Quick takesWeather outlook

Mike McClellan, right, meteorologist and owner of Mobile Weather Team in Washington, discusses his weatheroutlook with Joe Louis of Kasbeer Farmers Co-op in Bureau County, last week during MID-CO Commodities’32nd annual winter outlook meeting in Bloomington. McClellan at the event predicted a switch to more winter-like conditions in February followed by a stormy start to spring in Illinois. (Photo by Daniel Grant)

Forecasters: February may be more winter-likeBY DANIEL GRANTFarmWeek

Those wondering what hap-pened to winter in Illinois thisseason may wonder no more ifFebruary forecasts come tofruition.

Mike McClellan, meteorolo-gist/owner of Mobile WeatherTeam in Washington, last weekpredicted colder-than-normaltemperatures and above-aver-age precipitation for the lastfull month of the winter sea-son.

The prediction, if realized,would be a big change fromthe relatively mild conditionsexperienced the first twomonths of the climatologicalwinter (December and Janu-ary).

The prediction also differsfrom the National WeatherService Climate PredictionCenter’s seasonal outlookwhich last week called for acontinuation of above-averagetemperatures across Illinois inFebruary.

“We’ve been very spoiled.November and December

were very warm and we’re kindof in a snow drought,”McClellan said last week atMID-CO Commodities 32ndannual winter outlook meetingin Bloomington.

“But I think it’s coming toan end.

In fact, it’s changing alreadyas January has been colderthan we saw in November and

December,” the meteorologistcontinued.

“Even though we got somewarm spells (in January), we’vealso been getting cold blastsfrom the arctic. It looks likethat will continue in February.”

The wild temperature fluc-tuations and above-averageprecipitation predicted nextmonth by McClellan couldresult in a heavy mix of rainand snow.

He based his forecast inpart on changes to the NorthAtlantic Oscillation (a measureof differences in atmosphericpressure at sea level thataffects the strength and direc-tion of westerly winds andstorm tracks) along with a LaNina in the Pacific Ocean thatmay persist and even strength-en in coming months ratherthan weaken.

“Typically, with a La Ninawe get a lot of cold and snowin the Ohio River Valley andGreat Lakes region,” McClel-lan said.

The stormy pattern, he said,could persist into the plantingseason.

“I think we’re going to havea really active spring,” themeteorologist said. “The clashof cold and warm air couldreally spark off some severeweather. It’s already starteddown south.”

Weather Services Interna-tional last week also predicteda shift to colder-than-normaltemperatures in February forthe north central U.S.

FarmWeekNow.com

Listen to Mike McClellan’soutlook for the spring plant-ing season weather at Farm-WeekNow.com.

government

Monday, January 30, 2012 FarmWeek

Ag colleges seegrowing demands

If student demand is any indication, Illinois’ four collegiateag institutions rank high in educational value.

Bob Hauser, dean of the University of Illi-nois College of Agricultural, Consumer, andEnvironmental Sciences (ACES), reported onthe situation at his university as well as at Illi-nois State University (ISU), Southern IllinoisUniversity (SIU), and Western Illinois Univer-sity (WIU).

The four universities annually report tomembers of the Illinois Agricultural Legisla-tive Roundtable.

ACES received increased numbers ofapplications from high school seniors; howev-

er, the campus limits ACES freshmen enrollment to about 500students, Hauser explained. The U of I is continuing to workwith community colleges to assist students who want to pursuefour-year degrees in Urbana, he added.

ISU saw growth in agriculture undergraduate and graduateenrollments. The ag program, which celebrated its 100thanniversary, also reported nearly 100 percent job placement forits ag grads.

SIU saw increased enrollments of undergraduate and gradu-ate students. In addition, planning is under way for a new Agri-culture, Food, and Forestry Building with a goal of breakingground in the next five years.

For the 2011-2012 academic year, WIU experienced thehighest ag student enrollment in the last 30 years. WIU alsonoted its performance bull testing program is marking its 40thanniversary and continued success in organic farm research onWIU’s organic farm. –- Kay Shipman

Bob Hauser

FB ACT laying groundworkfor 2012 legislative sessionsBY KAY SHIPMANFarmWeek

Advance preparation will be key for FarmBureau members who participate in FB ACT(Farm Bureau Agricultural Contact Team).

“With Congress and the General Assemblyin session over the next several months, weneed to be ready to respond quickly to be effec-tive as an organization,”said Liz Hobart, IllinoisFarm Bureau associatedirector of national leg-islation and policydevelopment.

Hobart encouragedFB members and man-agers to take steps nowand be better preparedto respond to an actionrequest on an importantissue.

Topping her list isknowing which legisla-tors represent you onthe state and federal lev-els — and how to contact them. Hobart sug-gested Farm Bureau members program theirlegislators’ telephone numbers or e-mailaddresses into their cell phones.

“If it’s April and you’re in the field andget an action request, having the informa-tion readily available in your cell phone

makes the contact very easy,” Hobart said.Farm Bureau members also may contact the

congressional switchboard at 202-224-3121 orthe General Assembly switchboard at 217-782-2000 and ask to be transferred to their lawmaker.

Establishing or reaffirming relationshipswith legislators also is important, Hobart said.A Feb. 29 legislator reception during the Gov-

ernmental Affairs Lead-ership Conference offersFB members an oppor-tunity to chat face toface with state lawmak-ers.

FB ACT membersmay sign up to be noti-fied about actionrequests via an automat-ed phone call, e-mail, ortext message.

Members also areencouraged to reporttheir legislator contactsto IFB “so we can gaugewhere we are on the

issues,” Hobart said. Members may considerprogramming the FB ACT reporting number(800-879-1976) or e-mail ([email protected]) intotheir cell phones, she added.

Contact your county Farm Bureau or goonline to {www.ilfb.org/fbact} for more infor-mation.

Rural Development is seek-ing applications for grants andloans for energy efficiency andrenewable energy projectsthrough the Rural Energy forAmerica Program (REAP).The first application deadlineis Feb. 21.

REAP has helped 290 farm-ers and rural small businessesin Illinois since it was author-ized in the 2008 farm bill.

“We have seen remarkableresults in energy savings inrural Illinois,” said ColleenCallahan, Rural Development

state director. Illinois recipients have

installed solar panels, geother-mal systems, wind turbines,and manure digesters. Othersupgraded equipment to moreenergy efficient models.

This year USDA will awardat least $12.5 million in grantsand about $48.5 million in loanguarantees.

The following are beingaccepted:

• Renewable energy systemand energy efficiency improve-ment grant applications and

combination grant and guaran-teed loan applications untilMarch 30;

• Renewable energy systemand energy efficiency improve-ment guaranteed loan onlyapplications on a continuousbasis up to June 29;

• Renewable energy systemfeasibility study applicationsthrough March 30; and

• Energy audits and renew-able energy development assis-tance applications throughFeb. 21.

Information about how to

apply for funding is availablein the Jan. 20 “Federal Regis-ter,” pages 2,948 through2,954.

Questions in Illinois may bedirected to Mary Warren [email protected] orby calling her at 217-403-6218.

A Wisconsin grain handlingfacility that is a retail division ofBloomington-based GROW-MARK has been cited for fivesafety violations by the Occu-pational Safety and HealthAdministration (OSHA).

OSHA cited Frontier FS ofIxonia, Wis., and proposedfines totaling $84,000.

“We are committed to safetyat all of our facilities,” saidAmy Bradford, GROWMARKspokesman. “We understandthere is greater emphasis ongrain handling safety as a resultof an incident in Northern Illi-nois (in which two young mendied inside a grain bin at a non-GROWMARK facility), and weunderstand there are regula-

tions that need to be compliedwith.”

Bradford said the Insuranceand Safety Services Division ofGROWMARK is investigatingthe issues brought to its atten-tion by the OSHA investigationand is working with OSHA toaddress those concerns and tocontinue its effort to provide alegally compliant and safeworking environment at itsfacilities.

Frontier was cited for failingto de-energize and lock outsweep augers before workersentered bins.

“Failing to de-energize andlock out sweep augers putsworkers entering grain bins atunnecessary risk for amputa-

tion injuries, engulfment, andsuffocation,” said Kim Stille,OSHA’s area director in Madi-son.

The facility also was citedfor failing to provide body har-nesses or alternative protectionas well as rescue equipment forwork inside grain bins.

“We are very active in pro-moting safe work environmentsfor our employees, our membercooperatives, and other farmersand agribusinesses throughcompany-sponsored trainingprograms and other activities,”Bradford said.

“We understand OSHA’srole and view OSHA inspec-tions as a routine part of ourbusiness,” she said.

Part of GROWMARK System

Wisconsin grain facility is cited by OSHA

Rural Development accepting applications for renewable energy, energy efficiency

gOvErnmEnT


Continued from page 1review. Despite bipartisan support for highway legislation,Schock was not as optimistic about funding for long-awaited Illi-nois-Upper Mississippi river lock improvements, predicting“there will not be enough money” to fully fund new lock con-struction.

Further, he sees no shift in House resistance to an industryproposal to raise barge fuel taxes that would help leverage feder-al project dollars.

“There may be a small pot for emergency repairs and so on,”Schock said. “But I don’t anticipate the kind of money thatwould get my farmers and folks who use the rivers excited hap-pening in this highway bill.”

The president used his address to announce creation of a newfederal “Trade Enforcement Unit” that will be charged withinvestigating unfair trading practices in China and other coun-tries. He plans more inspections “to prevent counterfeit orunsafe goods from crossing our borders.”

“I will go anywhere in the world to open new markets forAmerican products,” Obama told lawmakers. “And I will notstand by when our competitors don’t play by the rules. We’vebrought trade cases against China at nearly twice the rate as thelast administration — and it’s made a difference.”

Obama

European debt crisis could pinch U.S. ag economyBY DANIEL GRANTFarmWeek

The U.S. ag economy seemedunfazed last year by economic troublesaround the world, including the Euro-pean debt crisis.

USDA recently projected U.S. netfarm income for 2011 would total arecord-high $100.9 billion. Farmlandvalues, as a result, have continued toescalate to historic highs after increas-ing 22.2 percent the previous five years,according to USDA.

“I continue to be impressed with thestrength of the ag economy and ofdemand,” said Peter Goldsmith, ageconomist at the University of Illinois.

But the ag sector could face pressurethis year from lower commodity prices,a stronger dollar, and increased costs.Economic troubles in some parts ofthe world also could slow demand forag products.

The International Monetary Fund(IMF) last week cut its 2012 forecast

for global growth from 4 percent to 3.3percent, based in part on its projectionof a mild recession in the 17-nationeuro zone.

“The United States and otheradvanced economies are susceptible tospillovers from a potential intensifica-tion of the euro zone crisis,” the IMFsaid in its latest World Economic Out-look report.

The U.S. ag economy in recent yearsbenefitted from a weak dollar thathelped promote exports. But there areconcerns a softer euro will strengthen

the dollar and slow ag exports.“It would be very bad if the euro

implodes,” Goldsmith said.The IMF last week left its baseline

oil price projection for 2012unchanged at $100 per barrel, but itforecast a 14 percent drop in commod-ity prices, not including oil.

The ag economist is hopeful, how-ever, the situation in Europe will stabi-lize.

He also believes strong demand andtight supplies could help maintaincommodity prices.

“In Europe, I look at whether theprivate sector is buying sovereign debt,and they continue to buy,” Goldsmithsaid. “That’s a sign (the debt crisis) canbe managed.”

Meanwhile, the value of the dollarhas risen but it still is at “export-friendly” levels, according to Gold-smith.

“I’m amazed how weak the dollarhas remained given the extent of theEuropean debt crisis,” he said.“Demand seems to be resilient enough(to keep ag products moving throughthe pipeline).”

Goldsmith said he was not overlyconcerned about the trend of higherfarmland values.

Farmland values/cash rents “reflectwhat farmers think they can get for afair return,” he said. “They’re not tak-ing on a lot of debt (farm real estatedebt from 2010 to 2011 actuallydecreased 3 percent). This is not likethe 1980s.”

Ag banks remain strong but face unique challengeslending in 2011, according toFederal Reserve Bank data.

Ag bankers last year report-ed softer operating loandemand. And, with moredeposits and limited gains in

non-real estate loan volumes,the average loan-to-depositratio at ag banks the secondhalf of last year plunged to itslowest level in a decade. —Daniel Grant

Agricultural banks last yeartended to fare better than non-ag banks as strong farmincome strengthened loanportfolios.

In general profits at agbanks improved as borrowersrepaid farm debts. The returnon assets at ag banks in thethird quarter increased to lev-els above that at non-ag banks,according to the FederalReserve System’s agriculturalfinance outlook.

Meanwhile, the share ofdelinquent farm real estateloans declined in the thirdquarter and delinquent non-real estate loan volumesdipped to the lowest level since2009.

“Relative to non-ruralbanks, their (farm) clients havevery healthy balance sheets,”said Peter Goldsmith, Univer-sity of Illinois economist.

The situation has createdsome unique challenges for

ag banks, though. Less farm debt/borrowing

activity could mean less inter-est income for local ag banks.But Goldsmith believes the aglending industry still is instrong shape.

“If the cycle of credit wereto slow, then there could be aproblem,” he said. “But I don’tsee any indication of that.”

Higher farm income boost-ed liquidity in the farm sectorand slowed non-real estate

‘I continue to be impressed with thestrength of the ag economy and ofdemand.’

— Peter GoldsmithUniversity of Illinois ag economist

Jan. 30On-the-Road seminar, 6p.m. Jackson CountyExtension office,Murphysboro.

Jan. 31 On-the-Road seminar,7:30 a.m. Union CountyFarm Bureau, Jonesboro.

On-the-Road seminar, 6p.m. Gambit Golf Courseclubhouse, Vienna.

Jan. 31-Feb. 1 University of Illinois cropmanagement conference,Northfield Inn ConferenceCenter, Springfield.

Feb. 1On-the-Road seminar,noon, GrecianSteakhouse, Pinckneyville.

On-the-Road seminar, 6p.m. FS Building, Marion.

Feb. 2On-the-Road seminar,7:30 a.m. Franklin CountyFarm Bureau, Benton,618-435-3616.

On-the-Road seminar, 6

p.m. Saline County FarmBureau, Harrisburg.

Feb. 3On-the-Road seminar, 1p.m. LawrencevilleCounty Farm Bureau,Lawrenceville.

Feb. 6On-the-Road seminar, 8a.m. Christian CountyFarm Bureau, Taylorville,217-824-2940.

Feb. 7On-the-Road seminar,7:30 a.m. Shelby County4-H Center, Shelbyville,217-774-2151.

On-the-Road seminar, 1p.m. Macon County FarmBureau, Decatur.

Feb. 7-8University of Illinois cropmanagement confer-ence, I-Hotel andConference Center,Champaign.

Feb. 9On-the-Road seminar, 9a.m., Piatt County FarmBureau, Monticello, 217-762-2128.

Feb. 10 Illinois Winter WheatForum, Krieger’s HolidayInn, Mt. Vernon.

Feb. 21On-the-Road seminar, 6p.m. Knox County AgriCenter, Galesburg.

Feb. 21-22 University of Illinois cropmanagement conference,Kishwaukee CollegeConference Center, Malta.

Feb. 24On-the-Road seminar, 1p.m. John WoodCommunity College AgCenter, Perry.

Feb. 27On-the-Road seminar, 7:30p.m. Effingham CountyFarm Bureau, Effingham.

Feb. 28On-the-Road seminar, 9a.m. Fayette County FarmBureau, Vandalia.

March 5On-the-Road seminar,5:30 p.m. Wabash CountyFarm Bureau, MountCarmel, 618-262-5865.

DATEBOOK

ArouNd IllINoIs


HIGH ON THE HOG

Springfield artist Suzanne Schmid works on a heart-shaped pendantmade of bacon encapsulated in resin. Schmid, a California cattlerancher’s daughter, sells much of her bacon jewelry online throughcustom orders.

BY KAY SHIPMANFarmWeek

Astrip of baconmay be a tastywork of art tosome people.

Springfield artist SuzanneSchmid also sees somethingbeautiful that is worth preserv-ing. Say as a belt buckle, ear-rings, or cuff links.

That’s right — Schmid, thedaughter of a California cattlerancher, creates jewelry frommeat, especially bacon. Shesells much of her bacon jewel-ry through custom orders fromonline websites.

Her creations also may be seenat {www.zanneavenue.com} or atthe Blue Door Gallery, 214 S.Sixth St., Springfield.

“The world of new andinventive ways to use the all-purpose bacon continues tosurpass even my imagination,”said Jim Kaitschuk, executivedirector of the Illinois PorkProducers Association.

Schmid, a sculpture majorin college, remembered thefirst time she thought of meatas potential art material. Theiridescent sheen on a packageof roast beef caught her eyeand it “snowballed into mylove affair with meat in art,”she said with a laugh.

Work as a photojournalistled Schmid to Springfield whilejewelry and art were a sidelinebusiness.

Over the past several years,she became a full-time artistand began creating bacon jew-elry one year ago.

Some of the public is sur-prised, even skeptical, aboutSchmid’s declaration that herwork is made with genuine

Bacon real work of artfor Central Illinois artist

Pendants and rings fashioned by artist Suzanne Schmid, Springfield,put bacon in a new light. (Photos by Ken Kashian)

cooked bacon preserved inresin. “They’re shocked at first,‘No way.’ Then, ‘Oh, it’s awe-some,’” she said.

Her bacon buckle is themost popular seller amongboth men and women. Womenalso favor her bacon rings, she

added.When Schmid first ventured

into the world of bacon jewel-ry, she tried using raw baconwith resin, but her artworkbecame too aromatic after twoweeks.

“Somehow the power ofraw meat is greater than resin,”she explained. In desperation,

she threw her creation into aboiling pot of water, andvoila, problem solved.

Surprisingly, Schmid hadnot thought of tapping intoher agricultural roots by mar-keting her jewelry to farmers.

“I wouldn’t have suspectedthe ag market would be inter-ested,” she said.

Asked if she has any plansto expand her jewelry line intoother meats, Schmid answered:“I’m always on the lookout forgood-looking meats; butbacon is what people want.”

As for her rancher father’sview of his daughter’s cre-ations, Schmid said shebelieves “he is secretlyproud.”

After all, Schmid hasproven that one man’s break-fast may be another man’sjewelry.

FarmWeekNow.com

For additional details on what’snew with bacon jewelry, go toFarmWeekNow.com.

The annual Illinois State Horse Judges Semi-nar will be from 8 a.m. to 5 p.m. March 31 atthe University of Illinois, Urbana.

Registration and classroom instruction willbegin in the Animal Sciences Lab’s room 150,1207 W. Gregory Drive.

Live classes may be held in the afternoon atthe U of I stock pavilion, depending on arenaconditions.

The activity is open to all judges of youthand open horse shows, potential judges, horseshow exhibitors, and spectators of horse events.

The seminar is designed to encourage uni-form standards for judging and exhibiting hors-es and to create a directory of horse showjudges.

The instructor will be Chuck Schroeder ofDelaware, Ohio. Schroeder has judged 4-Hshows for 35 years as well as international,

national, or world show championships formajor horse breed associations.

Topics covered will include show ring tips,ethics and standards, judging multi-breed 4-Hclasses, and class standards for stock, hunt, sad-dle and draft halter, Western showmanship,Western pleasure, stock and hunter seat equi-tation, and Western riding and trail.

Registration fees are $20 for individualsyounger than 18, $30 for adults, and $50 foradults planning to take written and live judgingexams to be eligible for listing in the state horsejudge directory. The seminar is sponsored by Uof I Extension and the U of I animal sciencesdepartment.

For more information or to obtain registra-tion materials, e-mail Kevin Kline, U of I Exten-sion equine specialist, at [email protected]. Hisphone number is 217-333-1784.

Illinois state horse judges seminar March 31

markets


Basis reaches historic levels; more corn neededBY DANIEL GRANTFarmWeek

The corn basis this monthjumped to historically high lev-els as reluctant farmer-sellersprompted processors to bid upprices.

Decaturcash corn bidslast week were28 cents aboveMarch Chicagocorn futures.

“We havenever seencash bids overfutures for thethird week in January whichwe are seeing now,” said Dar-rel Good, University of Illi-nois Extension economist,who for 38 years has trackedweekly prices for country Illi-nois markets.

Aaron Curtis, market ana-lyst with MID-CO Commodi-ties, believes the jump in basislevels was prompted partly bytight corn supplies and arecent drop in prices which

made grain prices seem“cheap” to farmers comparedto previous levels.

“The (corn) basis is athistorical levels for thistime of year,” Curtis told

FarmWeek last week atMID-CO’s 32nd annualwinter outlook meeting inBloomington. “Producershave been reluctant sellers.”

Curtis believes the cropmarkets in coming monthsneed to encourage farmers toplant more corn.

USDA earlier this monthtrimmed ending stocks of cornby 2 million bushels, loweringthe stocks-to-use ratio to 6.7percent compared to 8.6 per-cent for 2010/11.

“Carryout continues to behistorically tight,” Curtis said.

“(The market) is still encourag-ing farmers to plant morecorn.”

Some private estimates haveprojected U.S. corn plantingsthis year could reach 94 million

acres comparedto 91.9 millionacres last year.

“We need arecord crop thisyear,” the ana-lyst said. “Wecould rally(corn) pricesinto the springplanting season.

Short-term the basis shouldcontinue to be firm.”

Crop prices this year couldhang below last year’s levels,though, if productionprospects are good.

“We need favorable weatherand dry conditions to plant allthose corn acres and keepthem,” Curtis said. If thatoccurs, “we could have a burden-some supply moving forward.”

Hugh Whalen, MID-CO ana-lyst, noted wheat prices droppedabout $3 per bushel since peak-ing last February near $9 perbushel as world wheat produc-

tion last year set a record.“Wheat stocks should

remain comfortable for thecoming year,” he said. “But

basis levels should be betterthan average. The market ishaving to bid up prices to pullwheat out of storage.”

‘The (corn) basis is at historical levelsfor this time of year. Producers havebeen reluctant sellers.’

— Aaron CurtisMarket analyst, MID-CO Commodities

WIU Ag Mech Club’s Farm Expo Feb. 11-12

Western Illinois University’s (WIU) 42nd annual Farm Expowill open at 9 a.m. Feb. 11 on the Macomb campus. The show isorganized by the Agriculture Mechanization Club. Show hourswill be 9 a.m. to 5 p.m. Feb. 11 and 10 a.m. to 4 p.m. Feb. 12.

The event will feature emerging ag technology, tractors andmachinery, livestock equipment and supplies, crop supplies, aswell as information about ag sales and service, conservationmethods, and ag structures.

Scherrie Giamanco, state Farm Service Agency executivedirector, will speak at 10:30 a.m. Feb. 11.

A farm toy and craft show also will occur both days in theupper concourse of Western Hall. A tractor pull for children willstart at noon Feb. 12.

There is no entry fee and free parking will be available inWIU’s Q-Lot located on the east side of Western Hall.

For more information, contact WIU’s School of Agriculture at309-298-1080 or the Ag Mech Club office at 309-298-1231; [email protected]; or go online to{www.wiufarmexpo.com}.

Visitors stroll through the exhibits of last year’s Western Illinois Universi-ty (WIU) Farm Expo on the Macomb campus. The two-day event will beFeb. 11-12 and feature a variety of products, services, and topics. (Pho-to courtesy WIU)

IFF answering consumers’ questionsThe Illinois Farm Families

(IFF) is a coalition of com-modity groups for beef, corn,soybeans, pork, and the IllinoisFarm Bureau. It is acceptingconsumers’ questions andposting answers to those ques-tions on its website{www.watchusgrow.org}.

FarmWeek is publishing thequestions and answers to shareinformation andbetter preparefarmers the nexttime they areasked a probingquestion.

Q: I am inter-ested in becom-ing a farm owner one day.Although I would love toinherit my family farm, it’s justnot in the cards. What adviceyou can give me?

Jeffrey Butler,Blandinsville: Most farms todayare family owned and operated.In fact, in Illinois, 94 percent ofall farms are family owned.

If you’re really seriousabout wanting to pursue yourdream, I have a couple of ideasyou can think about. For

starters, try to connect with anexisting, established farmer inyour area.

See if you can find somework as a hired farm employee.Learn as much as you canabout farming from that per-son. Then, as land becomesavailable, maybe you can tradelabor for use of the farmer’sequipment.

The cost to rentland these daysaverages from $200-$350 per acre, andthe cost to purchaseland averagesaround $10,000 anacre (for excellent-

quality land). Another option for you to

consider is to contact your localFarm Services Agency (FSA).There are some federal loansavailable for young farmerswho have worked in agriculturefor at least three years and whocan show that they’re in chargeof making all the managementand financial decisions.

My advice to you is to startout small and work your wayup.

risk management


AgriVisor offers a variety of risk management toolsBY KAREN JONES

Coping with risk is a hugechallenge for today’s farm-ers. Although never an easytask, it seems to keep gettingtougher — and the stakeskeep getting higher. Theworld economy entered anew era of risk following the2008 financial crisis, andwith the intensifying U.S.financial challenges, the hostof European Communityproblems, and now therecent implosion of a majorU.S. trading firm, the likeli-hood for continued volatilityseems high.

“Certainly, the overallstrength of the U.S. farmingindustry is exceptional, buthistory reminds us that goodtimes don’t last forever,”said Clayton Pope managerof Agrivisor LLC. “We allknow how quickly things canchange and how often com-pletely unanticipated surpris-es tend to pop up. Thisbeing the case, the prudentcourse is to consider explor-ing possible steps that canbe taken to help ensure con-tinued prosperity.”

One easy step is becomingfamiliar with a firm that hasspent the last several decadesworking exclusively with riskmanagement. AgriVisor, afirm owned jointly byGROWMARK and the Illi-nois Farm Bureau, offersfarmers a wide variety ofservices.

Through its website,{www.agrivisor.com}FarmWeek, DTN, and otheravenues, AgriVisor offersfundamental and technical

flat-price marketing, mer-chandising, input costexpertise, hedge accounting,cash flow, and break-evenanalysis.

Pope also explained theCrossover Solutions services,offered through local grainelevators.

“The Crossover SolutionsInsight program is a man-aged-bushel program wherethe producer commitsbushels to expert tradersfrom AgriVisor, Doane Agri-cultural Services, and Pro-Farmer for pricing during adefined period of time,” hesaid. “A variety of hybridcash grain contracts also isavailable as a Crossover

Solutions service.” AgriVisor also offers tra-

ditional futures and optionsservices, including full serv-ice retail brokerage, traderecommendations, marketinformation, and timely exe-cution.

Pope recommends calling800-676-5799 or visiting theAgriVisor website for moreinformation.

Karen Jones is GROW-MARK’s publications and newsspecialist. Her e-mail address [email protected].

news, analysis, and broadlyapplicable cash marketingrecommendations.

Farmers who choose the

MaxVisor Premium Servicework closely with a personalrepresentative to find riskmanagement solutions for

Hybrid cash grain contract optionsThe four most popular hybrid cash grain contract options

offered by AgriVisor, according to manager Clayton Pope, are:• Premium NT: Allows producers to capture above-market

price on a cash sale today, in return for an offer of a specificquantity at a specific price in the future.

• Crossover Floor LX: Allows producers to secure a guar-anteed floor below current prices and still enjoy unlimitedupside potential.

• Min/Max: Allows producers to secure a guaranteed floorbelow current prices and still enjoy limited additional upsidepotential.

• Insurance Hybrids: These products do an excellent job ofmaximizing the effectiveness of Federal Crop Insurance poli-cies by integrating the prot ection they offer with marketingrisk management.

Chicago Farmers plan farmland investment fair

The Chicago Farmers willhave its annual farmlandinvestment fair from 8 a.m.to 2:30 p.m. Saturday in Joli-et Junior College’s Weiten-dorf Agricultural EducationCenter, Joliet. Lunch will beserved between 11 a.m. and 1p.m. Tuesday is the deadlinefor early registration.

Fifteen breakout sessionswill be offered on a first-come, first-served basis. Top-ics include nutrient manage-ment, 1031 exchanges, farm-land values, and eminentdomain.

The early registration feeis $50 until Tuesday andincreases to $75 after thatdate. Registration may bedone online with a creditcard or by calling the admin-istrator’s office at 312-388-3276. Go online to{www.chicagofarmers.org}.

programs


New award to recognize Friend of IFB Young Leaders

Livestock producers can learn how to cutfeed costs through grazing at the 2012 North-west Illinois Grazing Conference.

The conference will be held from 9 a.m.to 3 p.m., Thursday, Feb 16, at the HolyCross Catholic Church in Stockton. Thetheme of the event is “Dollars and Sense ofGrazing.”

Pastures often are under-appreciated as aless expensive way of meeting animal nutri-tional needs. An Illinois producer, with amoderate investment in materials and somemanagement changes, can increase forageproduction significantly and meet animalnutritional needs for as many as ninemonths each year, according to event organ-izers.

Experts from the University of Illinois,Iowa State University, and the NaturalResources Conservation Service will make pre-

sentations at the conference that deal withusing water as a management tool, recommen-dations on temporary and permanent fencingstrategies, how to successfully renovate pas-tures (including technical assistance that isavailable for pasture improvements), and adetailed analysis of how grazing reduces feedcosts.

Suppliers of pasture-related materials,services, or livestock-based local food whoare interested in sponsoring or setting up abooth at the conference should call the JoDaviess Soil and Water Conservation Dis-trict at 815-858-3418 (extension 3) by Feb.10.

The registration fee is $20 per personthrough Feb. 10 and $30 after that date. Con-tact the U of I Extension at 815-858-2273 forregistration information or register online at{web.extension.illinois.edu/jsw}.

Conference to focus on grazing efficiency

BY DANIEL GRANTFarmWeek

Illinois Farm Bureau YoungLeaders (YL) recently unveiledan award program that will rec-ognize friends of the programand potentially boost member-ship and participation in YL.

The State Young LeadersCommittee, this month in itsfirst meeting of the year,approved the implementation

of the new Friend of YoungLeaders Award.

The award is designed torecognize county Farm Bureaumanagers who encourage YLparticipation in events andprograms.

“It’s a brand new programthat will run during the pro-gram year (Sept. 1 throughAug. 21),” said Jennifer Smith,IFB Young Leader manager.

“It will give managers recogni-tion they don’t always get.”

Under the program, man-agers will receive points forYL participation in county,district, and state activities.The manager who accumu-lates the most points eachprogram year will receive a$250 Visa gift card and a trav-eling trophy.

The YL State Committee

hopes the award program willencourage more Young Lead-ers to participate in events andalso encourage county FarmBureaus to promote orincrease the number of YLevents each year.

“Hopefully this will encour-age counties to get more activeand maybe even do (YL)recruitment events,” Smithsaid.

Applications for this year’sinaugural Friend of YoungLeaders Award must be sentto the IFB Young LeaderDepartment and postmarkedby Oct. 1.

Boosting YL membershipand involvement is among thetop priorities this year for

Monica Stevens, state YoungLeader chairman.

“I think one of the biggestpriorities this year for YoungLeaders isworking withexisting com-mittees andreaching outto countiesthat eitherwant a (YL)committee orwe thinkshould beinvolved in Farm Bureau,”Stevens recently toldFarmWeek.

“The more numbers wehave, the more voices we havefor agriculture,” she added.

‘Hopefully this will encourage coun-ties to get more active and maybeeven do (Young Leader) recruitmentevents.’

— Jennifer SmithIFB Young Leader manager

Monica Stevens

Anaerobic digester workshops slatedLivestock and dairy farmers may learn about anaerobic

digesters at three February workshops. Registration is required.On Friday (Feb. 3), dairy farmers in the Clinton County Elec-

tric Co-op area may learn about development of digester proj-ects. The workshop will be from 9 a.m. to 2 p.m. in the KnottyPine Restaurant, Breese.

On Feb. 9, livestock producers in South-Central Illinois maylearn about digester projects. The workshop, sponsored by fourarea electric co-ops, will be from 9 a.m. to 2 p.m. in the KellerConvention Center, Effingham.

On Feb. 10, livestock producers in West-Central Illinois maylearn about digester projects. The workshop, sponsored by sixelectric co-ops in the region, will be from 9 a.m. to 2 p.m. inSpoon River College’s community outreach center, Macomb.

Each workshop will feature presentations on developing adigester, funding an anaerobic digester, connecting to the electricgrid, using digester products, improving energy efficiency, andgovernment regulations.

To register or obtain more information, go online to{www.midwestcleanenergycenter.org} and click on the desiredmeeting under “Upcoming Events” on the right side.

Farmers also may contact their area electric cooperative orJohn Freitag with the Association of Illinois Electric Coopera-tives for more information or to register. Freitag’s contact infor-mation is [email protected] or 217-241-7973.

U of I Board of Trustee chairman to give keynote address at GALC

Christopher Kennedy,chairman of the University ofIllinois Board of Trustees,will deliver the closingkeynote address March 1 atthe 2012 Illinois FarmBureau Governmental AffairsLeadership Conference(GALC) at the Crowne Plaza,Springfield.

Kennedy, a businessman,was appointed to the board oftrustees in 2009 by Gov. PatQuinn. He will discuss engag-ing in issues at the grassrootslevel.

The two-day conferenceFeb. 29 through March 1 will

offer nearly 30 workshoptopics. A legislative receptionwill be held Wednesdayevening.

Registration is being offeredfor either or both days. Thecost is $50 for Wednesday only,$30 for Thursday only, or $70for both days.

Pre-registration ends Feb.17. Hotel reservations aredue directly to the hotel byFeb. 1.

To register for the confer-ence or receive more informa-tion, contact your county FarmBureau or go online to{www.ilfb.org}.

from the counties


• Livingston and McLeanCounty Farm Bureaus andPrairie Central Co-Op will spon-sor a “Put Safety First on YourFarm” meeting at 7:30 a.m.Wednesday, Feb. 8, at the Lexing-ton Community Center. Break-fast will be served. John Lee, Illi-nois Feed and Grain Association,and a representative from the Illi-nois State Police, will be thespeakers. Call the Farm Bureauoffice at 815-842-1103 for reser-vations or more information.

MCLEAN — McLeanand Livingston County

Farm Bureaus and Prairie Cen-tral Co-op will sponsor a “PutSafety First on Your Farm”meeting at 7:30 a.m. Wednesday,Feb. 8, at the Lexington Commu-nity Center. Breakfast will beserved. Partial funding providedby a farm safety grant from Illi-nois Farm Bureau and CountryFinancial. Call the Farm Bureauoffice at 309-663-6497 for reser-vations or more information.

MACON — FarmBureau will sponsor

an On-the-Road seminar at 1p.m. Tuesday, Feb. 7, at theFarm Bureau auditorium.Kevin Rund, Illinois FarmBureau senior director of localgovernment, will be the speak-er. Call the Farm Bureauoffice at 877-2436 for reserva-tions or more information.

MONROE — A View-point meeting will be

at 6:30 p.m. Thursday at Bully’s

in Columbia. Dinner will beserved. Call the Farm Bureauoffice at 939-6197 for reserva-tions or more information.

• An Ag Day program will beat 8 a.m. Wednesday, Feb. 8, at theMonroe County Annex. Break-fast will be served. Robert Bellmand Wayne Johanning will be thespeakers. Call the Farm Bureauoffice at 939-6197 or the Univer-sity of Illinois Extension office at939-3434 by Thursday for reser-vations or more information.

PEORIA — The PeoriaCounty Soil and Water

Conservation District annualmeeting will be at 8 a.m. Saturdayat the Brimfield High School.Breakfast will be served. Call671-7040 by Tuesday for reserva-tions or more information.

• A family fun day will be at11:30 a.m. Saturday, Feb. 11, atMt. Hawley Bowl, Peoria. Cost is$5 for three games and children 6to 12 years of age bowl free.Reservations are not necessary.

PIATT — Farm Bureauwill sponsor a stroke

detection screening from 9 a.m.to 4:30 p.m. Wednesday at theFarm Bureau office. Cost is$100. Call 877-732-8258 formore information.

• An On-the-Road seminarwill be from 9 to 11 a.m. Thurs-day, Feb. 9, at the Farm Bureauoffice. Kevin Rund, IllinoisFarm Bureau senior director oflocal government, will be thespeaker. Call the Farm Bureau

Ronald McDonald House ofCharities of Chicagoland andnorthwest Indiana will host anon-perishable food drop-offfor local food pantries Thurs-day, Feb. 23, at the Farm Bureauoffice in celebration of FoodCheck-Out Day. Contact theFarm Bureau office at 708-354-3276 for more information.

GREENE — Applica-tions for the Greene

County Farm Bureau Foundationscholarships are available at theFarm Bureau office, high schoolagriculture departments, andfrom guidance counselors. Callthe Farm Bureau office at 942-6958 for more information.

GRUNDY — FarmBureau is hosting a grain

rescue and protection trainingsession from 1–5 p.m. Wednes-day, Feb. 15, at the CountyHighway Department. Contactthe Farm Bureau office at 942-6400 for more information.

JERSEY — Applicationsfor the Jersey County

Farm Bureau Foundation schol-arships are available at the FarmBureau office, high school agri-culture departments, and fromguidance counselors. Call theFarm Bureau office at 498-9576for more information.

LEE — Farm Bureau ishosting a Master Grain

Contract seminar at 7 p.m.Wednesday, Feb. 8, at the OgleCounty Farm Bureau buildingin Oregon. Jerry Quick, formerIllinois Farm Bureau seniorlegal counsel, will be the guestspeaker. The seminar is free ofcharge, but pre-registration isrequired. RSVP to the FarmBureau at 815-857-3531.

• Application deadline forfoundation scholarships isWednesday. Applications areavailable online at{www.leecfb.org}. Applicationsare open to high school seniorsand undergraduate studentspursuing a degree in agricultureor agriculture-related field.

• Application deadline forthe Foundation “Books by theBushel” program is Wednesday.Applications are availableonline at www.leecfb.org. Con-tact the Farm Bureau office ore-mail [email protected] forfurther information.

• District 4 Young Leaderswill be holding a curling eventat 7 p.m. Friday, Feb. 10, in Tri-umph. RSVP to the FarmBureau office at 815-857-3531or [email protected].

LIVINGSTON — TheLegislative Committee,

WJEZ Radio, and The DailyLeader will sponsor a LivingstonCounty state legislators’ candi-date forum at 6:30 p.m. Tues-day at the Pontiac TownshipHigh School auditorium, Ponti-ac. Candidates for the 53rdSenate district and 106th Leg-islative district have been invit-ed. Call Kent from WJEZRadio at 815-844-6101 or Tere-sa Grant-Quick at 815-842-1103 for more information.

BUREAU — The YoungLeader Committee will

participate in the annual Dis-trict 4 curling outing from 7 to10 p.m. Friday, Feb. 10, at theWaltham Curling Club, Tri-umph. Participants will need tosign a liability waver. Clean ten-nis shoes are required. Cost is$20. Call the Farm Bureauoffice for more information.

• Farm Bureau will sponsor aninformational meeting at 2 p.m.Wednesday, Feb. 15, at the FarmBureau office for the Sept. 22-28trip to the Black Hills BuffaloRoundup. Call the Farm Bureauoffice for more information.

• A Women in Agricultureseminar will be at 8 a.m. Friday,March 23, at the iWireless Cen-ter, Moline. Cost is $50, whichincludes breakfast and lunch.Michele Payn-Knoper, Cause-Matters.com, will be the mainspeaker. Deadline for registra-tion is March 1. Cost after theMarch 1 deadline is $60. Walk-ins will be $75. Call the RockIsland County Farm Bureauoffice at 309-736-7432 for reser-vations or more information.

CALHOUN — FarmBureau and Country

Financial will sponsor an estateplanning seminar at 10 a.m. Fri-day, Feb. 17, at the RiverdockRestaurant, Hardin. Call theFarm Bureau office at 618-576-2233 for reservations or moreinformation.

CARROLL — FarmBureau will sponsor a

preview meeting for the BlackHills trip with TriState Tours at7 p.m. Wednesday, Feb. 8, at theNaaman Diehl Auditorium.Call the Farm Bureau office formore information.

• The Women’s Committeewill sponsor a blood drive withthe American Red Cross from 11a.m. to 5 p.m. Monday, Feb. 20, atthe Naaman Diehl Auditorium.Call the Farm Bureau office at815-244-3001 for an appointmentor more information.

CHRISTIAN — FarmBureau will host an On-

the-Road seminar at 8 a.m.Monday, Feb. 6, at the FarmBureau building. Call the FarmBureau office at 824-2940 forreservations. The event is limit-ed to 25 attendees.

COLES — Farm Bureauwill sponsor a state rep-

resentative meet and greet meet-ing at 5 p.m. Thursday, Feb. 16,at the Lifespan Center, LoxaRoad. Call the Farm Bureauoffice at 345-3276 for reserva-tions or more information.

COOK — Farm Bureau isoffering a free education

seminar on the property taxassessment appeals process at6:30 p.m. Monday, Feb. 20, atthe Farm Bureau office in Coun-tryside. Cook County Board ofReview Commissioner Dan Pat-lak will be the guest speaker.Call the Farm Bureau office at708-354-3276 for reservationsor more information.

• Farm Bureau and the

office by Monday, Feb. 6, forreservations or more information.

• Foundation scholarshipapplications are due by 4:30p.m. March 30. Scholarships areavailable for high school seniorsand current college studentsmajoring in an agriculturalrelated field of study. [email protected] for anapplication.

PIKE — The annual meet-ing will be at 6:30 p.m.

Wednesday, Feb. 8, at the FarmBureau office. An Illinois Senatecandidate forum will follow thebusiness meeting.

• Farm Bureau will sponsor a“meet the candidate” forum at6:30 p.m. Wednesday, Feb. 8, atthe Farm Bureau office. Fea-tured will be the three Republi-can candidates from the 50thSenate district. The forum isopen to the public.

SCOTT — Farm Bureauwill sponsor a “meet the

candidate” forum at 6:30 p.m.Wednesday, Feb. 8, at the PikeCounty Farm Bureau office,Pittsfield. Featured will be thethree Republican candidatesfrom the 50th Senate district.The forum is open to the public.

SHELBY — Farm Bureauwill host an On-the-Road

seminar at 7:30 a.m. Tuesday,Feb. 7, at the Shelby County 4-Center, Shelbyville. Breakfastwill be served. Call the FarmBureau office at 217-774-2151for reservations.

profitability


Export inspections(Million bushels)

Week ending Soybeans Wheat Corn01-19-12 35.7 17.1 35.201-12-12 41.0 13.4 30.1Last year 43.9 25.0 26.9Season total 675.8 637.4 647.4Previous season total 935.6 731.0 651.6USDA projected total 1300 925 1600Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Feeder pig prices reported to USDA*Weight Range Per Head Weighted Ave. Price10 lbs. $33.48-$62.18 $44.0840 lbs. $69.41 $69.4150 lbs. no longer reported by USDAReceipts This Week Last Week 121,528 129,624*Eastern Corn Belt prices picked up at seller’s farm

MARKET FACTS

Eastern Corn Belt direct hogs (plant delivered)(Prices $ per hundredweight)

This week Prev. week ChangeCarcass $81.11 $81.08 0.03Live $60.02 $60.00 0.02

(Thursday’s price)This week Prev. week Change

Steers n/a 125.69 n/a Heifers 126.00 125.67 0.33

USDA five-state area slaughter cattle price

This is a composite price of feeder cattle transactions in 27 states.(Prices $ per hundredweight)

This week Prev. week Change $153.07 150.39 2.68

CME feeder cattle index — 600-800 Lbs.

Lamb prices

(Thursday’s price)

Why the need for cleaner-burning diesel fuel?BY JOE KIRKPATRICK

Some will remember theOldsmobile commercial withthe tag line “It’s not your fa-ther’s Oldsmobile.”

Today, the same can be saidabout diesel fuel. Diesel fuel isdramatically different than itwas 60 years ago, when it start-ed being widely used in vehi-cles and agricultural equip-ment.

Emissions and fuel econo-my are two of many reasonswhy diesel fuel and engineshave evolved.

The Environmental Protec-tion Agency (EPA) requiresthat newer engines meet in-creasingly tighter emission lev-els. At the same time, opera-tors demand better fuel econo-my to help control their costs.

To add to the complexity,EPA’s Renewable Fuel Stan-dard 2 (RFS2) mandates higherusage of biofuels. Thechanges we see in diesel fuelare designed to help enginesmeet emission requirementswhile also working with newtechnologies that improve fueleconomy.

Managing the quality of thefuel that goes into newer vehi-cles and equipment is essential.

Fuel quality managementbegins with purchasing a pre-mium diesel fuel that containsa multifunctional additivepackage formulated to solvemany of the problems associ-

ated with basic, No. 2 dieselfuel.

Advanced chemistry im-proves lubricity to protectfuel pumps and injectors,while other additives preventcorrosion in tanks and fuellines.

Premium diesel also con-tains components that pre-vent problems associated withmoisture, which can infiltratefuel from condensation orpoor handling practices.

Also, detergents keep injec-

tors clean to optimize com-bustion for maximum power,greater fuel efficiency, andlower emissions.

Maintaining high-qualityfuel starts even before yoursupplier delivers it.

Storage tanks should becleaned of moisture or sedi-ment that may have occurredover time. It’s important tocheck transfer tanks, too.

Installing new filters withthe correct specifications alsocan help ensure fuel quality

while maximizing fuel flowrates.

What can be expected frommanaging fuel quality andusing a high-quality, premiumdiesel fuel?

With continued use, losthorsepower will be restoredfrom injectors that have be-come “dirty” over time.

Fuel economy improve-ments between 5 and 6 per-cent are typical. Also, fuelpumps, injectors, and filterslast longer, reducing expen-

sive downtime when equip-ment is needed most. It alladds us to real savings.

Your local FS energy spe-cialist has the knowledge andexperience to make sure yourfuel is clean and keep yourequipment and vehicles oper-ating at their best.

Joe Kirkpatrick is GROW-MARK’s refined and renewablefuels sales manager. His e-mailaddress is [email protected].

Recent rain doesn’t cure crop concerns in South AmericaBY DANIEL GRANTFarmWeek

Recent rains offered briefrelief in parched areas ofSouth America, particularlysouthern Brazil and Argentina,but the precipitation wasn’tenough to end concerns aboutshort crops.

USDA earlier this monthprojected average soybeanyields this year compared tolast year would decline by 4.4bushels per acre in Paraguay, 4bushels in Brazil, and 0.3 of abushel in Argentina.

Meanwhile, USDA thismonth trimmed Argentina’scorn production by 3 millionmetric tons (118 millionbushels) and many traders be-lieve final yields will be evenlower.

“In Argentina, production is

centrally located, and that’swhere it’s been the hottest anddriest,” said Bryce Stremming,market analyst with MID-COCommodities, during MID-CO’s 32nd annual winter out-look meeting in Bloomingtonlast week.

“They’re going to havesome (production) problems.”

Mike McClellan, meteorolo-gist and owner of MobileWeather Team in Washington,the keynote speaker at theMID-CO meeting, said recentrains were widely scattered inArgentina.

He predicted the hot/drypattern will continue therenext month.

“The problem is the fronts(that have passed over Argenti-na) have not been very well or-ganized,” McClellan said.

“Almost all of the farmingarea (in Central Argentina) isdry. And I suspect that, overall,the dry weather pattern willcontinue in South America.”

The northern two-thirds ofBrazil, on the other hand, hasreceived sufficient rainfall forcrop production. But many

traders doubt pro-duction there willbe enough to offsetcrop losses to thesouth.

“If we do see adrop in productionin Argentina, wemay see (U.S.) ex-ports pick up a bit,”Stremming said.

Elsewhere, a se-vere drought inMexico, whichseems to be gettingless media attentionthan the SouthAmerican situation,also could have asignificant impacton the markets.

The current out-look for spring-summer grainharvests in Mexico is for sig-nificant damage to production.

“Logically, if there’s nowater in the dams, there won’tbe corn,” Jose Luis Luege,managing director of Mexico’snational water commission,said during a telephone inter-view with the media.

“We’re going to need to im-

port more grains from theU.S.”

Last year, Mexico lost a re-ported 1.2 million hectares(2.88 million acres) of cropsand about 50,000 head oflivestock to the ongoingdrought, which also had asimilar impact in the southernU.S., including much ofTexas.

Auction CalendarTues., Jan. 31. 10 a.m. Warren Co

Land Auction. John F. Gardner, Trustee,MONMOUTH, IL. Van Adkisson

Auction Service, LLC. www.bidder-sandbuyers.com

Wed., Feb. 1. 6 p.m. 86 Ac.Cumberland Co. Stanford H. SholemLand Trust, TOLEDO, IL. Stanfield

Auction Co.www.stanfieldauction.com

Thurs., Feb. 2. 10 a.m. Land Auction.Earl Seltzer Trust, MORRISONVILLE,IL. Aumann Auctions. www.auman-

nauctions.comThurs., Feb. 2. 158 Ac. Kankakee. SoyCapital Ag Services. www.soycapita-

lag.comFri., Feb. 3. 10 a.m. Land Auction

Warren Co. John A. Taylor,ROSEVILLE, IL. Van Adkisson AuctionService, LLC. www.biddersandbuy-

ers.comSat., Feb. 4. 9:30 a.m. Retirement

Auction. Wright J. Cotter, GALATIA, IL.Jamie Scherrer Auction Co. www.jami-

escherrerauction.comSat., Feb. 4. 10:30 a.m. Land Auction.Ruby Nell Deckard, CAMARGO, IL.Gordon Hannagan Auction Co.www.gordyvilleusa.com

Sat., Feb. 4. 10 a.m. Land AuctionRandolph Co. WATERLOO, IL.

BuyAFarm.comMon., Feb. 6. 10 a.m. Farmland

Auction. Rex Moreland, RAMSEY, IL.

Cory Craig, Auctioneer.www.corycraig.com

Tues., Feb. 7. 10 a.m. Farm machin-ery. Lester F. Lydigsen Jr., DWIGHT, IL.Bradleys’ and Immke Auction Service.www.bradleyauctionsinc.com

Tues., Feb. 7. 11 a.m. Vermilion CoLand Auction. ROYAL, IL. Murray WiseAssociates, LLC. murraywiseassoci-

ates.comWed., Feb. 8. 10 a.m. Unreserved

Auction Online Only. www.bigiron.comThurs., Feb. 9. 10 a.m. 153 Ac.

Livingston Co. Dorothy A. Coyne Trust,GRAYMONT, IL. Immke and Bradleys’

Auction Service.biddersandbuyers.com/immke

Thurs., Feb. 9. 10 a.m. 395 Ac. WarrenCo. Roy L. Green Trust, MONMOUTH,IL. Van Adkisson Auction Service, LLC.

www.biddersandbuyers.comFri., Feb. 10. 9 a.m. ConsignmentAuction. TREMONT, IL. Cal Kaufmanand Brent Schmidgall, [email protected] [email protected]., Feb. 11. 10 a.m. Farm and

Livestock Eq. Auction. Rod Kehr Est.,ALEXIS, IL. Gregory Real Estate andAuction, LLC. www.biddersandbuy-

ers.comSat., Feb. 11. 10 a.m. Pike Co LandAuction. Prairie Power Inc., PITTS-FIELD, IL. Sullivan Auctioneers LLC.www.sullivanauctioneers.comSat., Feb. 11. 10 a.m. Farm Eq

Auction. Dave Miller, DELAVAN, IL.

Hoyland Auction. www.auction-block.com or www.auctionzip.comSat., Feb. 11. 9:30 a.m. RetirementAuction. David and Laverne Schumm,WAYNE CITY, IL. Jamie Scherrer

Auction Co. www.jamiescherrerauc-tion.com

Sat., Feb. 11. 10 a.m. Farm MachineryClose-Out Auction. Chuck and JoAnnUrsprung, EDWARDSVILLE, IL. MarkKrausz Auction Service. krauszauc-

tions.comTues., Feb. 14. 10 a.m. LaSalle CoLand Auction. Hertz Farm Mgmt. Inc.

www.hfmgt.comWed. Feb. 15. 10:30 a.m. Land AuctionWinnebago Co. Homer F. Green Trust,PECATONICA, IL. Lenny Bryson,Auctioneer. www.lennybrysonauc-

tioneer.comThurs., Feb. 16. 10 a.m. Ford Co

Farmland. J&J Trust, ELLIOTT, IL. BillKruse, Auctioneer.

Fri., Feb. 17. 2 p.m. Farmland Auction~ Online Only. Aumann Auctions.www.aumannauctions.com

Fri., Feb. 17. 10 a.m. Farmland andHunting Ground Auction in TazewellCo., IL. Robert Zimmerman, GREENVALLEY, IL. Nehmelman Auction Co.topauctions24-7.com/nehmelman

Sat., Feb. 18. 10 a.m. 124 Ac. RichardKelley, WATERLOO, IL. Schaller

Auction Service. www.auctionzip.comSat., Feb. 18. 10 a.m. Farm EqAuction. Randy Waddell Estate,TREMONT, IL. Hoyland Auction.

n/a

PROFITABILITY

AgriVisor Hotline Number

309-557-2274

AgriVisor endorsescrop insurance by

Policies issued by COUNTRYMutual Insurance Company®,

Bloomington, Illinois

AgriVisor LLC1701 N. Towanda Avenue

PO Box 2500Bloomington IL 61702-2901

309-557-3147

AgriVisor LLC is not liable for any damageswhich anyone may sustain by reason of inac-curacy or inadequacy of information providedherein, any error of judgment involving anyprojections, recommendations, or advice orany other act of omission.

CASH STRATEGISTCorn Strategy

ü2011 crop: Market activityhas confirmed the 6- to 7-week low has been estab-lished. If March futures canovercome $6.42, that wouldopen the door for prices totest the $6.64 level. Use a rallyabove $6.35 on March futuresto make catch up sales. Leavean order to add a 10 percentsale if March futures hit $6.60.

ü2012 crop: Use ralliesabove $5.65 on Decemberfutures to make catch-up sales.Leave an order to add a 10percent sale if Decemberfutures hit $5.80.

vFundamentals: Recentstrength in corn has come froma short-term burst in exportdemand and dollar weakening.The Federal Reserveannouncement last week of itsintentions to keep interest rateslow through 2014 may keepthe dollar on the defensiveshort term, but ongoing prob-lems in Europe will prevent amajor breakdown. The exportmarket has perked up, liftingbasis levels at the Gulf. Tightfarmer holding is responsiblefor basis strength.

Soybean Strategyü2011 crop: Continue to use

rallies above $12.25 on Marchfutures to make catch-up sales.Because soybeans have more“weather vulnerabilities” inSouth America at this time, weare more patient in recommend-ing a new sale. Still, leave anorder to price another 10 per-cent if March reaches $12.75.

ü2012 crop: With even amodest reduction in SouthAmerican output, there’s a needto increase soybean acres andproduction here this comingyear. Still we’d use rallies to$12.20 on November futures forcatch-up sales. Leave an orderto add another 10 percent sale ifNovember futures hit $12.49.

vFundamentals: Evenwith the talk about Russian,Ukrainian, and Argentineexport curtailment for grains,soybeans still have the bestfundamental reason to gohigher. The calendar has nowshifted into a period in whichSouth American weather willbe a more important factorfor the soybean crops than itwill be for corn output.

Wheat Strategyü2011 crop: The short-

term trend turned higherwhen Chicago March futuresovercame the $6.27 resistance.The next upside target is at aprevious interim high at$6.70. Use current strengthto make catch-up sales.Check the Cash Strategist Hot-line frequently as this rallymight be the winter sellingopportunity we have beenlooking for. The carry infutures still pays for commer-cial storage, making springhedge to arrive contracts thebest marketing tool.

ü2012 crop: Stay close tothe Hotline as we could recom-mend sales at any time, espe-cially if Chicago July futuresnear $7.

vFundamentals: Rumorshave been circulating that Rus-sia could curb its exports goingforward because of dwindlingsupplies. An export tax is themost talked about tool. Thiswould help improve the U.S.export business, especially nowthat our prices are competitivewith the world. Temperaturesin Russia and Ukraine willdecline sharply, increasingchances of winterkill.

Cents per bu.

South American crops in focus

Cash Strategist sales recommendationsBeans Corn Wheat

'11 '12 '11 '12 '11 '12

Prices are new cropor nearby futures

7/13/10 10% 6.00

7/21/10 15% 6.60

7/30/10 10% 6.98

8/6/10 15% 7.35

8/8/11 10% 6.68

11/17/11 20% 6.343/49/13/10 10% 4.61


10/11/10 10% 5.28

1/24/11 10% 5.87

4/25/11 10% 6.76

5/31/11 10% 6.79

8/1/11 10% 6.771/2

11/15/11 10% 6.45

11/15/11 10% 5.671/2

9/13/10 10% 10.27

30% unsold


10/11/10 10% 11.54

1/31/11 10% 13.31

4/25/11 10% 13.76

5/26/11 10% 13.75

8/1/11 10% 13.7111/15/11 10% 11.99

11/15/11 10% 11.99

8/29/11 10% 6.65

30% unsold20% unsold

8/29/11 10% 13.50

80%unsold

80% unsold80% unsold

11/17/11 20% 6.30


have improved in Argentinaover the last couple of weeks,moisture will need to continuefor growers there to achieve a48 mmt crop, let alone possiblyexceed it. Recent rains didallow a few more double-cropacres to get planted.

Considering the average ofthe current expectation suggestsa yield near last year’s yield,moisture will need to persistover the next month to keep theArgentine output near 48 mmt.

Brazil is a different story.Southern Brazil continues tofeel the impact of dry weather.Recent rains have largelybypassed some growing areas inRio Grande do Sul, the south-ernmost state. It is the thirdlargest producing state, behindMato Grosso and Parana.

Government officials in RioGrande do Sul cut their soybeancrop estimate another 0.75 mmtto 8 mmt this past week. It’s 2.3mmt below their original forecast.Officials cut the Parana crop to11.67 mmt down just more than 1mmt from their original forecast.

Moisture has improved somein Parana, stabilizing the cropthere. But it remains dry in RioGrande do Sul.

And Paraguay, a countrysandwiched between Argentinaand Brazil has seen its croppotential decline. Officialsthere cut 1.5 mmt off their ear-lier predictions.

But it’s important to remem-ber crop reductions will cut intoSouth America’s exports at theend of their marketing year, notthe beginning. That stands tohelp our new-crop exports most.

The trade seems to have cometo the consensus that the SouthAmerican corn crop “is what itis.” No one is certain what theultimate size of those corn cropswill be, but the trade is not wor-ried as much about that as it wasat the end of December. Thedamage has been done.

But there’s still time for thesoybean output to change, forbetter or for worse. Hence,there seems to be more interestin looking at weather and theimplications it might have forsoybean output than it will forcorn. South America’s Febru-ary is our August, and that’swhen the size of a soybeancrop is really determined.

Until now, there’s been someconcern about the South Amer-ican soybean crops, but the atti-tude that there was still time forconditions to change limitedthe anxiety. The moisture inArgentina over the past coupleof weeks further relieved someof the concern.

But now weather will have achance to lower prospects sig-nificantly, or improve themmodestly if conditions remaingood. Generally, the industry islooking for an Argentine cropof 48 million metric tons (mmt)and a Brazilian crop close to 70mmt. Both are off the initialexpectations of 52 mmt and 75mmt, respectively.

Even though conditions

pERspEcTIvEs


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1701 Towanda Ave.Bloomington, Ill., 61701

“I like to see a man proudof the place in which he lives.I like to see a man live in it sothat his place will be proud ofhim.” — Abraham Lincoln

Lincoln said those words inreference to a “hometown.”Rural Development is proud toserve the people of rural Illi-nois and help support commu-

nities in whichwe’re all proudto live.

So it’sappropriatethat we atUSDA RuralDevelopmentshare Lincoln’sinsights duringthis 150thanniversary of

the United States Departmentof Agriculture. It was Presi-dent Lincoln, after all, whoestablished USDA.

I believe Lincoln would beproud of the efforts of USDARural Development in hishome state 150 years later,using its resources to give ruralcitizens the opportunity to beproud of the places in whichthey live. We continue today

to be committed to the futureof rural communities and thehundreds of hometownsthroughout the Land of Lin-coln.

We are helping our Illinoishometowns build bridges tothe future by investing in theirmaintenance and improve-ments.

This past fiscal year, Illinois’USDA Rural Developmentfinancial partnerships helpedmeet community, business, andhome needs by investing $698million in rural Illinois. Wedelivered on average $1.9 mil-lion each day at an administra-tive cost of only 1.8 cents forevery dollar awarded!

Rural businesses utilized$36 million in support fromUSDA, an investment thatleveraged 78 percent in addi-tional funds.

Another $49 million wasawarded to rural communitiesand non-profits to createopportunities for local busi-nesses to start or expand.

More than 5,300 familiesused Rural Developmentfinancing options to purchasetheir first homes or upgrade to

better homes. We supported585 rural rental complexes andhomes in rural Illinois (that’snearly 11,000 residences). Six-ty-one percent of those arehomes for seniors and the dis-abled.

This past year we fundedcommunity improvement proj-ects benefitting 85,131 ruralresidents, brought safe waterto 13,700 rural families, andinvested $90 million in ruralbroadband.

The most important resultof USDA Rural Develop-ment’s 2011 investments inrural businesses, communities,and housing is the people wehelp. That, too, is the legacy ofAbraham Lincoln who calledUSDA “The People’s Agency.”

In 1862, about half of allAmericans lived on farms,compared to about 2 percenttoday.

But through our work onfood, agriculture, economicdevelopment, science, naturalresource conservation, and ahost of issues, USDA still ful-fills Lincoln’s vision by touch-ing the lives of every Ameri-can, every day.

While we don’t have all theanswers or all the resources tomeet the current needs, wecontinue to have guidancefrom Mr. Lincoln as it relatesto progress: “I’m a slow walker,but I never walk backwards,”he said.

We do our best at USDA

Rural Development to live upto President Lincoln’s expecta-tions, 150 years later and intothe future!

Colleen Callahan is the state direc-tor of USDA Rural Development.Her e-mail address [email protected].

COLLEENCALLAHAN

Rural Development: Living up to the Lincoln Legacy

Mary Ellen Fricke graphic

An economic look back and look ahead in 2012A fresh start is what many investors

are thinking about after leaving 2011behind. While overall returns were flat topositive over the full year, the headlinesand associated market volatility left most

feeling exhausted. After a third quarter in

which we saw the Stan-dard & Poor’s (S&P) 500Index decline 13.9 per-cent and 10-year U.S.Treasury rates drop to1.9 percent over con-cerns in Europe, a U.S.sovereign debt down-grade, political disarray in

Washington, and anemic U.S. economicgrowth, we had a fourth quarter thatreversed most of the damage.

While the European overhang was andis still present, improving U.S. economicdata led to the S&P 500 gaining 11.8 per-cent during the fourth quarter.

The bond market told a different sto-ry, however, with rates on 10-year treas-uries remaining virtually unchangedfrom the third quarter, seemingly unwill-ing to accept the better U.S. economicdata in the face of the festering Euro-pean debt crisis.

So once the dust settled, where didthat leave us for 2011? In the stock market, virtually thesame place that we started, as the S&P500 ended the year flat, not including areturn from dividends (total return of2.11 percent).

In the bond market, the Barcap U.S.Aggregate Bond Index (a good proxyfor the overall bond market) reflectedthe nearly 2 percent drop in 10-yeartreasury yields over the course of 2011and ended the year with a 7.84 percenttotal return.

Within U.S. stocks, growth stocksoutperformed value stocks, and large

capitalization stocks outperformed mid-and small-capitalization stocks.

Defensive economic sectors of theU.S. market performed best, includingutilities, consumer staples, and healthcare, while more cyclical sectors — suchas materials, industrials, and financials— underperformed the broad market.U.S. stocks also outperformed those ofEurope, Japan, and emerging markets.

Most sectors of the bond marketwere positive, with safe-haven sectorssuch as treasuries, municipals, TIPS(Treasury inflation-protected securities)and investment-grade corporates per-forming best.

So what will we do with our freshstart?

With the major caveat that the Euro-pean debt crisis doesn’t spread to therest of the world, we anticipate 2012 tobe a lot like 2011.

We think stocks look relatively attrac-

tive as investors come to terms with thefact there is some growth in the U.S.economy. There is a long list of posi-tives going into 2012: real gross domes-tic product (GDP) that is at an all-timehigh, record corporate earnings, animproving employment picture, strongconsumer spending, a pickup in manu-facturing activity, low interest rates, tameinflation, and an election year (typicallygood for stocks). However, that couldall be wiped out with a complete melt-down in Europe.

At the same time, it is difficult to beexcited about bonds, particularly treas-uries, with yields near all-time lows.When everyone wants something, itusually gets expensive, and right now,we think investors are paying a premi-um for safety.

Troy Frerichs is a senior investment officer inwealth management with Country Financial.

TROYFRERICHS

LETTER TO THE EDITORCommon sense ignoredin oil pipeline issueEditor:

I certainly agree withEdward Ragdale’s letter in theJan. 23 FarmWeek about theCanada-to-Texas oil pipeline.

Enbridge already has anexisting 3,500 miles ofpipeline infrastructure origi-nating in western Canada thatreaches to Detroit and Chica-

go and had planned an exten-sion in 2006 to be in service by2009.

This would have reachedthe transportation hub at Pato-ka, Ill., in Marion County.

We were approached in2006 and many received morethan reasonable paymentalready in 2007. The mitiga-tion agreement was sound andacceptable.

However, this project hasbeen held up by unreasonablemotivations, whether political,greed, or whatever — and if itproceeds, it will be much morecostly than it would have beenfive years ago.

Just as in the Keystonepipeline adventure, commonsense is being ignored.JOHN GRAMM,Gridley

farmweek jan. 30, 2012

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